The youth of South Africa need help from the government to succeed. With a growing youth unemployment rate, the government needs to increase its youth support programmes. One of the programmes introduced by the government aimed at the youth is called the Youth Pipeline Development Programme.
The Youth Pipeline Development Programme is run by the Industrial Development Corporation (IDC) of South Africa. The IDC was established in 1940 and is fully owned by the South African government.
The IDC aligns its priorities with the national policy direction as set out in the National Development Plan, Industrial Policy Action Plan and Industry Master Plans. The government agency works to support industrial capacity development by proactively identifying and funding high-impact projects.
Additionally, the IDC works to facilitate sustainable direct and indirect jobs, promote entrepreneurial development and grow the small to medium-sized enterprise (SME) sector.
In this article, we look at the IDC’s youth pipeline development programme and how you can apply for it.
What is the Youth Pipeline Development Programme?
The Youth Pipeline Development programme was developed to improve the readiness of potential applicants and increase their probability for IDC consideration. The programme offers pre- and post-investment business support to help youth applicants become investment-ready.
The programme is open to youth-owned start-ups or expansion businesses and offers support through 50% as a grant. The balance is recovered as a subordinated loan. The programme has a funding size of R50 million.
The programme supports businesses in the following sectors:
- Agro-processing and agriculture.
- Automotive and transport equipment.
- Basic metal and mining.
- Chemical products and pharmaceuticals.
- Clothing and textiles.
- Heavy manufacturing.
- Industrial infrastructure.
- Light manufacturing and tourism.
- Machinery and capital equipment.
- Media and motion pictures.
- New industries.
How to Qualify for the Youth Pipeline Development Programme
The qualifying criteria for the Youth Pipeline Development Programme are as follows:
- The business must be youth-owned.
- The application must meet IDC sector and funding limits.
- The business can be a start-up or an expansion business.
For pre-investment support, the qualifying criteria are as follows:
- The proposal must pass a readiness assessment and in principle receive the go-ahead from sector SBU Head.
- To bring the application to the bankable stage, including detailed marketing studies, mentoring, technical assessments, sourcing and negotiating with suitable suppliers, cost of products and QS costs.
- Up to 6% of the investment amount must be up to a maximum of R 500 000.
Post-approval assistance:
- Pre-implementation for assistance required in meeting/clearing of CPs (needs to be specific and be supported by cost estimates, with clear milestones for objectives and skills transfer).
- Implementation of in-depth mentoring and coaching and any other business support required for up to two years.
- Up to 40% of the investment amount of a maximum of R 1,5 million.
Note: Interventions provided during pre-implementation stages must not take more than 6 months to complete.
IDC Qualifying Criteria for Funding
As mentioned above, to qualify for the Youth Pipeline Development programme you need to meet the qualifying criteria of the IDC. The IDC’s minimum requirements for funding are:
- Your business needs to be a start-up (new business) or an existing registered business.
- Your business must be able to create jobs.
- You must have a completed business plan.
- Your business must showcase economic merit in terms of profitability and sustainability.
- Your business must have reasonable financial contribution from the owner(s)/shareholder(s)/sponsor(s).
- Security of the business which may include bonds over fixed and moveable assets of the business as well as personal surety and corporate guarantees.
- Your business must comply with South African business statutory requirements.
- Your business must comply with international environmental standards.
IDC Application Procedure
The IDC’s application procedure is as follows:
- Submit your written request for funding, including a funding request letter.
- Attach an executive summary and completed business plan.
- Ensure that you meet all the minimum requirements (as mentioned above).
- Submit your application to the IDC.
The IDC’s application approval process takes between three and five months. However, this is directed by the programme and its requirements. Once you have submitted your application, you are welcome to contact the IDC to ask about your application process.
You can get in touch with the IDC by calling the head office call centre on (+27)860 693 888/ (+27)11 269 3000. Alternatively, you can send an e-mail to callcentre@idc.co.za.
To apply for any IDC programme, fill in the online form, create a profile and start applying!
This programme is important for youth entrepreneurs who not only need funding but also need support to take their businesses to the next level and ensure long-term success. This programme will also help these youth-owned businesses create jobs and contribute to the overall betterment of communities.
If you are a young entrepreneur or know any young entrepreneurs, use this article to get the funding and support needed for enterprise success.
For more information on government funding, visit the SME South Africa website.
